NYSE:HTH

Stock Analysis Report

Executive Summary

Hilltop Holdings Inc. provides banking and financial products and services.

Snowflake

Fundamentals

Flawless balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Hilltop Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.6%

HTH

2.9%

US Banks

0.07%

US Market


1 Year Return

39.4%

HTH

8.6%

US Banks

8.9%

US Market

Return vs Industry: HTH exceeded the US Banks industry which returned 8.6% over the past year.

Return vs Market: HTH exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

HTHIndustryMarket
7 Day0.6%2.9%0.07%
30 Day-2.6%3.4%-0.3%
90 Day6.6%2.1%-1.6%
1 Year41.6%39.4%11.8%8.6%11.3%8.9%
3 Year1.6%-2.0%54.8%44.1%46.3%36.8%
5 Year15.0%10.9%70.2%51.6%62.1%44.3%

Price Volatility Vs. Market

How volatile is Hilltop Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hilltop Holdings undervalued compared to its fair value and its price relative to the market?

14.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: HTH ($23.97) is trading above our estimate of fair value ($19.83)

Significantly Below Fair Value: HTH is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: HTH is poor value based on its PE Ratio (14x) compared to the Banks industry average (12.6x).

PE vs Market: HTH is good value based on its PE Ratio (14x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HTH is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: HTH is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

  • Explore potentially undervalued companies in the Banks industry.

Future Growth

How is Hilltop Holdings forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTH's forecast earnings growth (3.1% per year) is above the savings rate (2.7%).

Earnings vs Market: HTH's earnings (3.1% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: HTH's earnings are forecast to grow, but not significantly.

Revenue vs Market: HTH's revenue is expected to decline over the next 3 years (-0.9% per year).

High Growth Revenue: HTH's revenue is forecast to decline over the next 3 years (-0.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HTH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hilltop Holdings performed over the past 5 years?

-3.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HTH's earnings have declined by -3.1% per year over the past 5 years.

Accelerating Growth: HTH's earnings growth over the past year (58.7%) exceeds its 5-year average (-3.1% per year).

Earnings vs Industry: HTH earnings growth over the past year (58.7%) exceeded the Banks industry 29.7%.


Return on Equity

High ROE: HTH's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: HTH has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate HTH's Return on Capital Employed to determine if it has improved over the past 3 years.


Next Steps

Financial Health

How is Hilltop Holdings's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: HTH has a low level of unsold assets or inventory.

Debt Coverage by Assets: HTH's debt is covered by short term assets (assets are 1.454220x debt).


Financial Institutions Analysis

Asset Level: HTH's level of assets compared to its equity is low.

Allowance for Bad Loans: HTH has a sufficient allowance for bad loans.

Low Risk Liabilities: HTH's liabilities are made up of primarily low risk sources of funding.

Loan Level: HTH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: HTH's loans are broadly funded by customer deposits.

Level of Bad Loans: HTH has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

What is Hilltop Holdings's current dividend yield, its reliability and sustainability?

1.34%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HTH's dividend (1.34%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: HTH's dividend (1.34%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: Whilst dividend payments have been stable, HTH has been paying a dividend for less than 10 years.

Growing Dividend: HTH's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (17.6%), HTH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Hilltop Holdings's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

Jeremy Ford (44yo)

0.5yrs

Tenure

US$3,022,479

Compensation

Mr. Jeremy Blue Ford serves as the Director at PlainsCapital Corporation. He has been Chairman of the Board at First Acceptance Corporation since November 2011. Oversees all holding company functional area ...


CEO Compensation Analysis

Compensation vs. Market: Jeremy has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Jeremy's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

47yo

Average Age

Experienced Management: HTH's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

10.5yrs

Average Tenure

72yo

Average Age

Experienced Board: HTH's board of directors are seasoned and experienced ( 10.5 years average tenure).


Insider Trading

Insider Buying: HTH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$96,00006 Sep 19
Darren Parmenter
EntityIndividual
Role
Chief Administrative Officer
Shares4,000
Max PriceUS$24.00
SellUS$810,25603 Jun 19
Hillel Feinberg
EntityIndividual
Shares40,000
Max PriceUS$20.26
SellUS$1,336,45801 Mar 19
Alan White
EntityIndividual
Shares69,029
Max PriceUS$19.40
SellUS$1,013,32113 Nov 18
Hillel Feinberg
EntityIndividual
Shares51,000
Max PriceUS$19.98

Ownership Breakdown


Management Team

  • Jeremy Ford (44yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$3.02m
  • Jerry Schaffner (61yo)

    President & CEO of Plainscapital Bank

    • Tenure: 8.9yrs
    • Compensation: US$1.49m
  • Todd Salmans (70yo)

    Chief Executive Officer of Primelending

    • Tenure: 8.8yrs
    • Compensation: US$1.63m
  • Keith Bornemann (47yo)

    Executive VP

    • Tenure: 1.9yrs
  • Darren Parmenter (56yo)

    • Tenure: 3.1yrs
    • Compensation: US$802.11k
  • Corey Prestidge (45yo)

    Executive VP

    • Tenure: 11.8yrs
    • Compensation: US$550.34k
  • Mark Plunkett

    Executive VP

    • Tenure: 1.6yrs
  • Will Furr (41yo)

    Executive VP & CFO

    • Tenure: 3.1yrs
    • Compensation: US$1.22m
  • Toby Pennycuff

    Chief Information Officer

    • Tenure: 2.4yrs
  • Erik Yohe

    Senior Vice President of Corporate Development

    • Tenure: 0yrs

Board Members

  • Jerry Ford (75yo)

    Chairman of the Board

    • Tenure: 12.2yrs
    • Compensation: US$959.90k
  • Jeremy Ford (44yo)

    President

    • Tenure: 0.5yrs
    • Compensation: US$3.02m
  • Robert Taylor (71yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$58.00k
  • Charles Cummings (82yo)

    Independent Director

    • Tenure: 14yrs
    • Compensation: US$123.00k
  • Rhodes Bobbitt (73yo)

    Independent Director

    • Tenure: 13.9yrs
    • Compensation: US$88.00k
  • Arthur Sherman (53yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$68.00k
  • Bill Hill (76yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$63.00k
  • W. Nichols (74yo)

    Independent Director

    • Tenure: 11.5yrs
    • Compensation: US$68.00k
  • Tracy Bolt (55yo)

    Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$111.00k
  • Charlotte Anderson (53yo)

    Director

    • Tenure: 6.9yrs
    • Compensation: US$58.00k

Company Information

Hilltop Holdings Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hilltop Holdings Inc.
  • Ticker: HTH
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.172b
  • Shares outstanding: 90.60m
  • Website: https://www.hilltop-holdings.com

Number of Employees


Location

  • Hilltop Holdings Inc.
  • 2323 Victory Avenue
  • Suite 1400
  • Dallas
  • Texas
  • 75219
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WXFDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 2004
HTHNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 2004

Biography

Hilltop Holdings Inc. provides banking and financial products and services. The company operates in four segments: Banking, Broker-Dealer, Mortgage Origination, and Insurance. The Banking segment offers sa ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:01
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.